Key Financial Relationships
Gross pro´¬üt 34.1% 35.7% 34.6% 37.0% 35.6% 35.6%
Current ratio 2.0:1% 1.4:1% 1.5:1% 1.7:1% 1.9:1% 1.8:1%
Average total debt to average
total equity 66.2% 55.7% 38.2% 29.0% 39.2% 40.5%
Average long-term debt to
average capital 23.3% 13.6% 15.6% 16.7% 22.0% 19.8%
...................................................................................................................................................
All financial data for the periods prior to 1990 have been restated for discontinued operations.
All financial data for the periods prior to 1988 have been restated for the consolidation of a majority-owned subsidiary.
451
Prospective Analysis: Valuation Theory and Concepts

11-47 Part 2 Business Analysis and Valuation Tools

EXHIBIT 3
Schneider Financial Statements and Accounting Policies

STATEMENT OF INCOME

(in FF million for the year ended December 31) 1990 1989 1988
......................................................................................................................................
Schneider and Square D

The following notes are an integral part of these ´¬ünancial statements.
454 Prospective Analysis: Valuation Theory and Concepts

11-50
Prospective Analysis: Valuation Theory and Concepts

SELECTED NOTES TO FINANCIAL STATEMENTS

1. ACCOUNTING PRINCIPLES are translated into French francs as follows:
ÔÇ“ Assets and liabilities are translated at year-end
The consolidated ´¬ünancial statements of
exchange rates;
Schneider SA have been prepared in accordance
ÔÇ“ Income statement and cash ´¬‚ow items are trans-
with French generally accepted accounting princi-
lated at average exchange rates.
ples and with the international accounting principles
Differences arising on translation are recorded
recommended by the International Accounting Stan-

Schneider and Square D
under shareholdersÔÇ™ equity.
dards Committee (I.A.S.C.). The differences between
these principles and U.S. GAAP are explained in
Note l.m), below.
c) Translation of foreign currency
The ´¬ünancial statements of consolidated subsid-
transactions
iaries, which are prepared in accordance with
accounting principles generally accepted in the
With the exception of the transactions described
countries in which they operate, have been restated
below, foreign currency debts and receivables are
in accordance with the principles applied by the
translated into French francs at year-end exchange